News

Cross Channel ferry operator SeaFrance is to cut more than a third of its 1,700-strong workforce, in an attempt to deal with "grave economic and financial difficulties".

SeaFrance explained its decision by the impact of the world economic crisis and its impact on the English Channel freight market, which it said had slumped by 20%.

The company’s management, which was told by the SeaFrance board to take more drastic measures after presenting a first rescue plan last month, has more than doubled the number of job cuts it had initially envisaged.

A statement said 650 jobs would be shed in France, affecting both sea-going and shore-based staff, and the firm would be restructured.

Announcing a restructuring plan, the firm said there had been a "steep fall in the Cross-Channel freight market".

SeaFrance does not indicate the timescale for implementation of the cuts but says it is aiming to return to break-even in 2010 with a view to becoming a “strong” shipping company again in 2011.